All Topics / General Property / Self managed property system

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  • Profile photo of DamienODamienO
    Member
    @damieno
    Join Date: 2008
    Post Count: 6

    Hi!

    I own a number of properties in Sydney (6) and have recently thought of taking the management back from my property managers and saving myself a few hundred dollars each month. So my first step in doing this is to find out how other people do this. If you manage your own rental properties

    1. Do you use a particular system or software?
    2. Do you use a separate bank account for each property or a single bank account all tenants pay into and expenses are paid out of?
    3. Do you calculate the ROI, monthly cashflow, etc on each property? If so, is this a manual calculation or do you have some other way?
    4. How do you maintain your records for tax time? or do you just keep a rolling Year to Date summary of income, expenses, loan payments, etc?

    Any advice on how to get started or even what else to think about would be much appreciated.

    Thanks,

    Damien

    Profile photo of DamienODamienO
    Member
    @damieno
    Join Date: 2008
    Post Count: 6

    Is it fair to say that most people who manage their own properties use a paper based system of some sort?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Did you know that rent rolls are valuable and can be sold. Maybe you could get a few friends together, do the real estate course and get licenced. You can then sell the roll – you will get around 1 to 2 times the annual income.

    eg. if you had 6 properties renting for $400 pw = $28800 pa. in rent. at 8% management fees = $2304. sell at 2 times = $4608.

    It may not be much, but imagine if you had 20 properties or even 50 properties.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of DamienODamienO
    Member
    @damieno
    Join Date: 2008
    Post Count: 6

    I was aware that rent rolls could be bought/sold, but I hadn't considered that. Perhaps that is an option, thanks for suggesting it.

    If I were to move in that direction, I'd like to have an understanding of how other people manage their properties? Is there a system or process that others use or does each person make up their own system?

    Profile photo of cool samcool sam
    Participant
    @cool-sam
    Join Date: 2008
    Post Count: 23

     were to move in that direction, I'd like to have an understanding of how other people manage their properties? Is there a system or process that others use or does each person make up their own system.

    _____________________________________________________

    Cobo Condos

    Chicago Condos

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Plenty of proprietry systems out there some better than others (look at Rentmaster – free trial available for download or manaccom [property pro and POSH]).

    The system keeps track of all rent & expenditure as well as creating reports

    Use one bank account, you know how much rent or which date the tenant is due & you check payments online.

    Profile photo of DamienODamienO
    Member
    @damieno
    Join Date: 2008
    Post Count: 6
    Scott No Mates wrote:
    (look at Rentmaster – free trial available for download or manaccom [property pro and POSH]).

    http://www.rentmaster.info/ – thanks looks interesting. In my opinion, a company offering a free trial is always a good sign.

    and Property Pro (http://www.manac.com.au/cgi-bin/products.cgi?sku=75331) also looks interesting.

    On the bank account issue, with 1 account, how can I see which tenant is up to date with their rent? Is this something the above software can do? or is it easier to calculate that manually?

    Thanks,

    Damien

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    You need to get your tenants to note on the direct deposit who it was from, otherwise there is no way of keeping up with it (especially if you have a few tenants paying the same amounts). Rentmaster can upload your bankstatements but I am not sure what it does to incorporate payments against tenants (most don't have that feature).

    Profile photo of DamienODamienO
    Member
    @damieno
    Join Date: 2008
    Post Count: 6
    DamienO wrote:
    http://www.rentmaster.info/ – thanks looks interesting. In my opinion, a company offering a free trial is always a good sign.

    I have done some more in depth investigation into Rentmaster.info and have found it isn’t property management software after all. It is in fact software for small party and event rental businesses. Companies that maintain a inventory of party or event equipment that can be rented out.

    Profile photo of DamienODamienO
    Member
    @damieno
    Join Date: 2008
    Post Count: 6

    Hello,

    Having tried Property Pro, I am somewhat disappointed. I am not convinced there isn’t better products available for managing property.

    If you manage your own property or a small rent roll, please tell me how you do it. Did you buy a software package to help you? or did you just start from scratch and build your own system over time?

    Damien

    Profile photo of C2C2
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    @c2
    Join Date: 2002
    Post Count: 518

    DamienO,

    Before going down that path make sure you have a full understanding of your legal requirements.  If self managed are you prepared and do you have time to attend tribunal hearings, court cases, apply for and serve eviction notices etc if you have a problem with a tenant?  It might appear a good way to save money not having to pay a property manager but do you really want the extra hassles that comes with it?  Are you the sort of person who can walk up to a single mother with 2 kids and serve an eviction notice?  If not then be careful of self management or only rent to people you don't mind evicting.

    Profile photo of WJ HookerWJ Hooker
    Participant
    @wj-hooker
    Join Date: 2007
    Post Count: 272

    DamienO,
     If all the properties are close, have you asked for a discount from the real estate agent?
    I parcelled up my properties and a few mates together and got a good discount.
    It's worth asking or playing off a few agents till you get the best deal, and if your not happy then go to another.

    Profile photo of C2C2
    Participant
    @c2
    Join Date: 2002
    Post Count: 518

    DamienO,

    Also the best deal doesn't mean lowest price.

    Try to find a place that charges a % that covers everything and not a place with add extras for postage and handling etc.  Also check how many staff compared to renters roll.  If not enough staff then the property managers are over worked and don't have enough time to check things thoroughly.  You may also ask to see examples of their inspections reports and fees charged for reletting or renewal of leases.  Some companies push 6 month leases telling you you can put the rent up at the end of each lease but what most really want to do is charge you a fee (can be 1 weeks rent)  for getting the tenant to sign a new lease.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    DamienO wrote:
    DamienO wrote:
    http://www.rentmaster.info/ – thanks looks interesting. In my opinion, a company offering a free trial is always a good sign.

    I have done some more in depth investigation into Rentmaster.info and have found it isn't property management software after all. It is in fact software for small party and event rental businesses. Companies that maintain a inventory of party or event equipment that can be rented out.

    You've picked the wrong website: www.rentmaster.co.nz/

    This is a property management specific software package.

    Profile photo of slallenslallen
    Member
    @slallen
    Join Date: 2008
    Post Count: 18

    Hi DamienO

    If you live in the area and do your research, property management isn't too difficult. Mind, there is a lot of work involved if things go wrong. Always screen your tenants carefully and keep records of all conversations/correspondence. You also need to be well read in terms of the Tenancy ACT and relevant policies in your state. I currently manage my two local IP's and have a property manager manage my other non-local IP. To keep track of the rent and expenses – I simply use an excel spreadsheet. Both rent's come in fortnightly for a fixed amount – so I use the one account and simply check via online banking that the payment has gone in each fortnight. I also record all expenses in the same spreadsheet – makes it very straight forward at tax time. For the non -local I get a statement sent to me which essentially contains all the information i keep in my spreadsheet for the 2 local IP's – but costs me $80+ in management fees each month…if you have the time to manage the properties – I say more power to you! Just know your rights (or lack of) and do your research. Best of luck

    Profile photo of sophiejonessophiejones
    Member
    @sophiejones
    Join Date: 2008
    Post Count: 1

    Hi I manage all my properties myself. I used to have managers but when I moved back to Sydney I took it over – 5-7 houses and flats. Some of my properties I also bought and they came to me with great tenants and I never needed any management.

    I actually dont manage much.
    All my outgoings I automatically put into my online banking's "sceduled payments", like strata, council, water and insurance
    Rent comes in.
    every 6 months I check to see the payments haven;t been missed. Never had a problem.

    I send tenants gifts at the end of the year. I tell them it's their place and they can call me any time with any worries. About once a year each property will need a toilet repair, or will ask for $500 to paint or something – no worries.

    We both enjoy a relationship of trust and respect and it's important to me to be ethical and fair, which I don't believe real estate agents or property managers are very good at. So for me it's cheaper – but more importantly for me, it's more ethical.

    Profile photo of BRG1200BRG1200
    Participant
    @brg1200
    Join Date: 2007
    Post Count: 16

    Wow, SophieJones it sounds like you've been very lucky  –  or the positive karma thing is working out for you!
    I don't yet own any IPs but I have a more cautious view of human nature!

    Profile photo of AAZAAZ
    Participant
    @aaz
    Join Date: 2008
    Post Count: 56

    Hi Damien

    We use POSH property management software.

    Here's a link to the video demonstration: http://www.supertech.com.au/poshdemo.htm

    Regards
    Adrian and Amber

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